How to have the "money talk" with your kids

One of the most important talks a parent can have with their child is the “Money Talk.”

However, according to the Ohio Credit Union League’s 2018 consumer survey, this isn’t happening even though parents surveyed said they consider these lessons extremely important to a child’s financial literacy.

Mike Losneck, CEO of Eaton Family Credit Union, explained the survey found 61 percent of respondents said they received most of their financial education through experience and life lessons. Only 23 percent felt they received financial education from home and, surprisingly, only 3 percent of Ohioans received financial education in the classroom.

“Ohio’s teens may not be graduating high school with the appropriate financial know-how,” Losneck said.

Citing the National Financial Educators Council annual financial literacy test given annually to kids ages 10 and up in all 50 states, Losneck said teens in Ohio, ages 15 to 18, averaged 60.32 percent on the test. Nationally, students of the same age scored an average of 61.11 percent

Parents want their children to have a good handle on finances before they leave the house in their late teens or early 20s, but most aren’t sharing the necessary wisdom to make that happen.

Losneck said parents often aren’t comfortable having this conversation with their children.

In the eighth annual Parents, Kids and Money survey conducted by T. Rowe Price, 69 percent of parents stated they have some reluctance discussing financial matters with kids while 35 percent said talking to their children about family finances is either very or extremely uncomfortable – ranking it alongside talks about death and drugs.

The survey also found parents are too self-conscious about their own financial situation to be comfortable sharing advice with their children. The survey found parents who previously declared bankruptcy are 24 percent more reluctant to discuss money with their kids. And, parents carrying significant credit card debt are 14 percent more likely to feel uneasy having those financial conversations. 


Teaching children about money can be as easy as setting a good example, Losneck said.

“Children who consistently see their parents pay the bills on time and keep a budget are more likely to adopt those practices in their own lives,” Losneck said. “Parents who have made financial mistakes should also share the experience with their children. That knowledge can prepare kids to avoid the same mistakes with their money in the future.”

Losneck also recommends:


Make savings a tangible concept. Encourage younger kids to collect spare change in a clear jar or container so they can see their savings grow. Each time the kids want a small treat, parents can offer to put the money they would have used to buy the treat into the “savings jar,” instead. Once the jar is full, children can count the money and use the funds to purchase an extra-special treat. That way, they’ll associate a sense of excitement with savings – they’ll understand that delaying gratification can lead to a greater payoff down the road.


Have kids learn with their own money. Kids will learn the value of a dollar better if it’s their own. Younger children who are paid a small allowance for chores they complete around the house will learn the concept of working for money.Kids can then begin to spend their own money on some of the things they want. They’ll begin to appreciate what these items actually cost and will be more open to lessons about price comparison.


Get kids familiar with banking. Parents can make a trip to their financial institution an exciting event for younger kids. Let them in on the process – maybe even let them press the buttons on the ATM or help to fill out a deposit slip. They’ll feel included in adult chores and won’t feel intimidated by banking later in life.


Get help. There are plenty of resources out there for parents feeling mystified about their children’s financial education. Free credit union-funded resources and tools are available at and Many credit unions also offer programs geared toward fostering financial literacy in kids and teens.

Dave Godek

Dave Godek, MBA

Business Development Manager

Eaton Family Credit Union

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Volume 9, Issue 5, Posted 4:48 PM, 05.10.2018